April 5 (UPI) — New York Attorney General Letitia James has called Donald Trump‘s $175 million bond posting into question, despite a corrected submission. A former assistant in the attorney general’s office tells UPI the posting is deficient for a number of reasons.
James’ office filed a notice of exception on Thursday after Trump’s attorneys resubmitted a corrected bond. The notice challenges whether underwriter Knight Specialty Insurance is legitimately qualified to assure the bond in the civil fraud judgment against Trump.
New York Supreme Court Judge Arthur Engoron has scheduled a hearing on the bond issue for April 22.
The filing notes that Knight Specialty Insurance is not a licensed insurer in the state of New York, not meeting a key requirement to post a bond in the state.
This is not the only issue with the bond, according to Adam Pollock, managing partner of the New York law firm Pollock Cohen LLP. Pollock is a former U.S. assistant attorney general, serving in that role until 2017.
“This bond is further financial chicanery in a trial about financial chicanery,” Pollock said. “This judge is going to have little patience for a flawed bond.”
Pollock told UPI that it is encoded twice in New York law that a bond must be written by a New York licensed insurer. This license is granted by the New York Department of Financial Services.
The financial statement, which was missing in the original bond filing, must also demonstrate that the insurer has at least 10 times the bond amount in surplus capital. In this case, that threshold is $1.75 billion.
Knight Specialty Insurance’s statement shows $138 million in surplus capital. That is less than the $175 million bond, let alone far less than the amount required by New York law.
“The state doesn’t want one insurance company writing for more insurance than it can guarantee,” Pollock told UPI.
Knight Specialty Insurance also enclosed a consolidated statement of all of the related companies, stating they combine for a surplus of about $1 billion.
The insurance company is part of a conglomerate called Hankey Group. Billionaire Don Hankey is chairman and CEO of the group.
Typically when a judgment is handed down, the defendant is expected to pay that judgment in full, Pollock explained. James allowed Trump a 30-day grace period to secure the funds to pay the $464 million judgment, but she was not required to do so.
Trump did not have to post a bond to appeal the judgment. However he did have to post a bond to be granted a stay of enforcement.
Trump and his attorneys have been critical of the size of the judgment and of James’ assertion that he can work with multiple insurers to secure it in full. They noted that the interest Trump will incur is not recoverable even if he wins on appeal.
Pollock says that, while this is true, some hardship is to be expected after losing a case.
Trump appealed the judgment, arguing that it is excessive. That appeal is not expected to be decided on until the fall, Pollock said.
“This is a big appeal. There was a two month trial so there are a lot of transcripts and factual material to wade through,” Pollock said. “I won’t be surprised if it takes longer than it typically does. If you look at the court calendar, Trump has to file the actual appeal by July 8. It will be argued in early September. If it’s standard they will have a result by the end of October.”
If Trump’s appeal is ultimately lost, enforcement of the judgment will immediately come back into effect, again putting his assets and properties at risk of being seized.
“I don’t expect any further grace to be forthcoming,” Pollock adds.
